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Avalara Help Center

How to I resolve error 'Invalid Canadian Tax Code' in NetSuite?

Overview

You are creating an Canadian order but receive an error 'Invalid Canadian Tax Code: AVATAX'. 

Environment

NetSuite

NetSuite OneWorld

Resolution

  • For tax calculation Avalara looks at the addresses on the customer record, invoice and location.  Also, we check the Tax Item ('Financial' tab) on the customer record.
  • When you select a Canadian customer to invoice you should notice the Summary section of the invoice reflect 'GST/HST" and 'PST'.  If the form doesn't update after selecting the customer, please check the address field. 
  • Under the ''Financial' tab of the customer record. The Tax Item should be ‘AVATAX’ for a US customer.  For a Canadian customer the Tax Item should be 'AVATAX-CAN'. 
  • On a Canadian invoice, when adding a line item, the tax code should auto populate with ‘AVATAX-CAN’. On a US invoice, when adding a line item, the tax code should auto populate with “AVATAX’.  

Next steps 

For more information, see Create Tax Codes for Canada